Bailout Board May Have To Pull Plug On Us

[Fly]

Airline Bailout Board May Have to Pull Plug on US Airways

By MICHELINE MAYNARD, The New York Times

The federal loan board created in 2001 to help assure the survival of the floundering airline industry may ultimately face the opposite task and be forced to decide whether to pull the plug on US Airways.

Read It Here

 

[usfliboi]

Wont happen!

 

[usair_begins_with_u]

Wont happen!

Wana bet?

B)

 

[EyeInTheSky]

Won't happen before Nov. 2. After, who knows.

 

[28yrsnojob]

get it over with already

 

[mrfish3726]

EYE,

Yeah it probably won't happen till after the election. But really, the election has nothing to do with USAIR and their default on the ATSB Loan. If you thought that the Bush or Kerry camps really cared what was happening at USAIR, UAL, or DELTA, don't you think they would have made that part of the campaign? The government doesn't care! They will be glad when the dust finally settles in this industry seeing it become healthy on it's own accord. There will be those that WON'T survive, and some that will be gobbled UP.

 

[EyeInTheSky]

28yrsnojob, c'mon! Look, if you have a personal axe to grind that's one thing. But I think its really low to wish 28,000 people and their families misery okay?

 

[mrfish3726]

FLY,

I am surprised that YOUR over here rubbing sand in the face of USAIR employees! Shame on YOU! :down:

 

[EyeInTheSky]

mrfish3726, Pennsylvania is a crucial state for each candidate, so is North Carolina. I agree the election has nothing to do with UAIR. But it would be "bad politics" to put 28,000 good paying jobs on the street. Job loses are a political issue and if the unions were smart they would start a PR campaign to use as a "bargaining chip."

 

[airbiiguy]

My advise is to start looking for a new job to all the union people, better yet, you might as well go back to school or you WILL NEVER find another job paying 18-20/hr! I fell bad for the union people , they were brainwashed into thinking this wonderful world would always be here for them, no worries at all, no need for productivity. I don't want to hear some union chest beaters replyign that I dont know what Im talking about!I know because I was union at U for 5 + years. I know that almost everyone I knew used and abused the system. And ya wonder why the company cant wait to get rid of all you? Stop crying, US and the pax who paid insane high fares during most of the 90s paid your insane high wages for unskilled labor.

 

[mrfish3726]

SKY,

Yes it is bad to see 28K people loose their jobs. This industry alone has lost what, 175K jobs since 9/11 and counting? Have they come to the rescue yet? They established the ATSB for one thing and one thing only. To stabilize airlines that had a viable business plan and who would not default on the ATSB loan.

They gave US one, it's no fault of the employees that management didn't transform the company as they said they would after the first BK. It's not fair that the only way they could see US become profitable again was to continually steal wages from their dedicated employees. The ATSB didn't give UAL a loan for the same reasons they saw happening at US after their BK. They knew with the rising fuel cost, flat revenues, and the fact that US had to renegotiate only a few months after exiting BK that there was a VERY high probability that they had made a mistake; giving US the loan.

There will be more job lose, and more airlines will either file BK or not survive their trip into BK. Time will only tell, but in the end the industry can only be healthier because of it.

 

[whatkindoffreshhell]

40% of the total airline revenue pie goes to labor.

Only the US Post Office devotes a higher percentage (80%) of total revenue to labor costs. Which is especially mind-boggling once you consider how much rolling stock and real estate they have, but let's not get into thread drift.

You guys can succeed, if you attract the necessary revenue and improve your productivity. Despite management.

Relax. Life will go on. Best of luck!

 

[Doc]

My advise is to start looking for a new job to all the union people, better yet, you might as well go back to school or you WILL NEVER find another job paying 18-20/hr! I fell bad for the union people , they were brainwashed into thinking this wonderful world would always be here for them, no worries at all, no need for productivity. I don't want to hear some union chest beaters replyign that I dont know what Im talking about!I know because I was union at U for 5 + years. I know that almost everyone I knew used and abused the system. And ya wonder why the company cant wait to get rid of all you? Stop crying, US and the pax who paid insane high fares during most of the 90s paid your insane high wages for unskilled labor.

[post="180500"][/post]​

And may I ask what you do for a living....and dont lie .......

Everybody is skilled labor if they know there job ....You couldn't handle it or got fired which is it.....maybe you cant hold a conversation with another human you would have to have a heart and soul for that and from your post you have neither.....

 

[funguy2]

Ultimately, ATSB pulling the plug will not change too many votes... For one, Joe Average Voter wants cheaper fares, and is not overly concerned with the fate of 28,000 employees. Furthermore, US Airways 28,000 employees translates into maybe 100,000 voters (including spouses, retirees, and sympathetic family members, etc, not all of whom will vote). How many of these people will change their vote based on the ATSB decision? Some will, but certainly not all.

Regardless, it is the ATSB's job to protect the best interests of the federal government. The best interest of the federal government is probably to stop supporting failing businesses and stop perverting the capital markets (How many other airlines cannot get, or get less private financing if the government continues to support a failing US Airways?) Certainly, any further investment in US Airways by the federal government will ensure the continuation of "excess" industry capacity, low fares, and loss producing companies. If the ATSB continues to allow US Airways to flounder, then all airlines will be hurt and the industry could collapse.

Also, and obviously, it is not in the government's best interest to invest more in a company which has not been able to demonstrate any financial turn-around. It is probably in the government's best interests to get its money out of the situation, and let the free market work.

While US Airways failure will not "fix" all the industry problems, it will help reduce capacity (i.e. supply of seats) and help prices and revenue at the remaining carriers to rise.

While this is little consolation to the employees who face hard times, its not in the government's best interest to continue to subvert the capital markets.

 

[UseYourHead]

We can only save ourselves, no one else will. Labor needs to get on board and with the support of creditors we will have another chance to make a go of things.

Duh....what has taken everyone so long to figure this out. Chest beating does not cut it...unless of course your one of those looking forward to unemployment.

EYE,

Yeah it probably won't happen till after the election. But really, the election has nothing to do with USAIR and their default on the ATSB Loan. If you thought that the Bush or Kerry camps really cared what was happening at USAIR, UAL, or DELTA, don't you think they would have made that part of the campaign? The government doesn't care! They will be glad when the dust finally settles in this industry seeing it become healthy on it's own accord. There will be those that WON'T survive, and some that will be gobbled UP.

[post="180486"][/post]​